June 3 (Bloomberg) -- Chinese equities traded in New York rose as data showing manufacturing expansion in the world’s two biggest economies boosted companies from Melco Crown Entertainment Ltd. to China Petroleum and Chemical Corp.
The Bloomberg China-US Equity Index climbed 0.5 percent to 102.67, extending last month’s 3.1 percent advance. The Hang Seng China Enterprises Index, also known as the H-share index, jumped 4.8 percent in May, the most in six months. Casino operator Melco rose to a four-week high and China Petroleum, Asia’s biggest refiner, led gains in energy producers.
China’s official Purchasing Managers’ Index climbed to 50.8 in May, the highest level in five months and more than the 50.7 median estimate of analysts surveyed by Bloomberg News, data from the statistics bureau and logistics federation showed June 1. The central government has intensified steps to sustain growth in recent weeks. In the U.S., the Institute for Supply Management’s factory gauge rose to 55.4. The figure, corrected twice, compared with an average estimate of 55.5.
“The China-sensitive part of the market is showing a positive reaction to the PMI, which indicates stabilization in the economy,” Michael Wang, an emerging-markets strategist in London at Amiya Capital LLP, said in a phone interview. “Chinese stocks could continue the May rally as people expect the government to loosen policies a bit to avoid a slowdown.”
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., added 0.7 percent to $37.12, a five-month high. The Standard & Poor’s 500 Index rose 0.1 percent to a record after erasing an early loss.
The ISM originally said its May manufacturing index fell to 53.2 from 54.9 a month earlier, before correcting it twice, once to 56 and a second time to 55.4. Fifty is the dividing line between growth and contraction.
“Beside the fact that they botched the release, it was roughly in line with consensus and relatively strong,” Greg Lesko, the managing director of Deltec Asset Management LLC in New York, said by phone. “The unknown question is whether this is just a rebound from a bad first quarter or the trend.”
China’s official manufacturing gauge compared with an April reading of 50.4. The Communist Party has stepped up the pace of stimulus measures, including faster spending from government budgets and increased railway investment, to help meet an official growth target of about 7.5 percent this year.
American depositary receipts of Melco Crown, which operates casinos in Macau, climbed 3.3 percent to $35.60 in New York, reducing this year’s drop to 9.2 percent.
ADRs of China Petroleum, known as Sinopec, rallied 2 percent to $92.12 in New York, the highest level since April 23. The ADRs traded at a 1.6 percent premium over its shares in Hong Kong, the widest since February. An ADR represents 100 underlying shares of Sinopec. Cnooc Ltd., China’s largest overseas oil explorer, climbed 1.4 percent to $173.57, gaining the most in a week.
Bona Film Group Ltd., a movie distributor, surged 6.2 percent to $6.55, the highest in two months. The Beijing-based company said on May 29 revenue jumped 31 percent to $56.6 million for the three months ended in March, which compared with an averaged $42.1 million estimate of two analysts compiled by Bloomberg. The stock was raised to buy from accumulate at China International Capital Corp. on May 30.
New Oriental Education & Technology Group Inc., China’s biggest private educational company, added 3.6 percent to a five-week high of $26.75.
Markets in Hong Kong and mainland China were closed for a holiday.
To contact the reporter on this story: Belinda Cao in New York at firstname.lastname@example.org
To contact the editors responsible for this story: Nikolaj Gammeltoft at email@example.com Marie-France Han